----

----

----

| Delaware(State or other jurisdiction ofIncorporation or organization) |   | 13-2635899(I.R.S. Employer Identification No.) |
|-----------------------------------------------------------------------|--------|------------------------------------------------|

----

----

----

| Large Accelerated Filer o                                                       | Accelerated Filer o         |
|---------------------------------------------------------------------------------|-----------------------------|
| Non-Accelerated filer o(Do not check if a smaller reporting company)  | Smaller Reporting Company x |

----

----

| Part I.  Financial Information:                                                                                  |   | PageNumber |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------|
|                                                                                                                  |   |       |
| Item 1.    Financial Statements:                                                                       |   |       |
|                                                                                                                  |   |       |
| Condensed Consolidated Balance Sheets –                                                                         |   |       |
| November 30, 2010 and May 31, 2010                                                                                    |   | 3          |
|                                                                                                                  |   |       |
| Condensed Consolidated Statements of Income –                                                                   |   |       |
| For the three months and six months ended November 30, 2010 and 2009                                                  |   | 4          |
|                                                                                                                  |   |       |
| Condensed Consolidated Statements of Equity –                                                                   |   |       |
| For the six months ended November 30, 2010 and 2009                                                                   |   | 5          |
|                                                                                                                  |   |       |
| Condensed Consolidated Statements of Cash Flows –                                                               |   |       |
| For the six months ended November 30, 2010 and 2009                                                                   |   | 6          |
|                                                                                                                  |   |       |
| Notes to Condensed Consolidated Financial Statements                                                                  |   | 7          |
|                                                                                                                  |   |       |
| Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 11         |
|                                                                                                                  |   |       |
| Item 4.    Controls and Procedures                                                                     |   | 16         |
|                                                                                                                  |   |       |
| Part II.  Other Information                                                                                      |   | 17         |
|                                                                                                                  |   |       |
| Item 6.  Exhibits                                                                                                |   | 17         |
|                                                                                                                  |   |       |
| Signatures                                                                                                            |   | 17         |

----

| Part I.  | Financial Information |
|---------------|-----------------------|

|    ASSETS                                                                                                      |   | November30,2010 |       |   | May 31,2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|------------|--------|------------------|--------|
|                                                                                                                          |   | (Unaudited)     |       |   | (Note 1)         |   |
| Current Assets:                                                                                                               |   |            |       |   |             |   |
| Cash and cash equivalents                                                                                                     |   | $               | 3,250,275  |   |             | $      | 5,669,972 |   |
| Certificates of deposit and marketable securities                                                                             |   |            | 4,114,665  |   |             |   | 3,015,389 |   |
| Accounts receivable, net of allowance for doubtful accounts of $202,000                                                       |   |            | 8,393,551  |   |             |   | 6,507,741 |   |
| Other receivables                                                                                                             |   |            | 4,504      |   |             |   | 3,957 |   |
| Prepaid expenses                                                                                                              |   |            | 37,677     |   |             |   | 94,604 |   |
| Prepaid and recoverable income taxes                                                                                          |   |            | 31,450     |   |             |   | 115,721 |   |
| Deferred income taxes                                                                                                         |   |            | 90,000     |   |             |   | 90,000 |   |
| Total Current Assets                                                                                                          |   |            | 15,922,122 |   |             |   | 15,497,384 |   |
|                                                                                                                          |   |            |       |   |             |   |   |   |
| Equipment and leasehold improvements, net of accumulated depreciation and amortization of $430,855 and $427,804          |   |            | 8,901      |   |             |   | 9,558 |   |
| Other assets                                                                                                                  |   |            | 49,653     |   |             |   | 49,653 |   |
| Deferred income taxes                                                                                                         |   |            | 52,000     |   |             |   | 55,000 |   |
| Total Assets                                                                                                                  |   | $               | 16,032,676 |   |             | $      | 15,611,595 |   |
|                                                                                                                          |   |            |       |   |             |   |   |   |
| LIABILITIES AND EQUITY                                                                                                        |   |            |       |   |             |   |   |   |
|                                                                                                                          |   |            |       |   |             |   |   |   |
| Current Liabilities:                                                                                                          |   |            |       |   |             |   |   |   |
| Accounts and other payables                                                                                                   |   | $               | 250,458    |   |             | $      | 259,448 |   |
| Accrued expenses and other current liabilities                                                                                |   |            | 1,596,378  |   |             |   | 1,291,160 |   |
| Advances from customers                                                                                                       |   |            | 1,432,740  |   |             |   | 1,491,490 |   |
| Total Current Liabilities                                                                                                     |   |            | 3,279,576  |   |             |   | 3,042,098 |   |
|                                                                                                                          |   |            |       |   |             |   |   |   |
| Equity:                                                                                                                       |   |            |       |   |             |   |   |   |
| Preferred stock, $1 par value, authorized 500,000 shares; none issued                                                         |   |            | —    |   |             |   | — |   |
| Common stock, $.01 par value, authorized 12,500,000 shares; issued 3,114,163 shares, 2,019,094 and 2,024,794 outstanding |   |            | 31,142     |   |             |   | 31,142 |   |
| Additional paid-in capital                                                                                                    |   |            | 5,102,868  |   |             |   | 5,102,868 |   |
| Retained earnings                                                                                                             |   |            | 20,833,163 |   |             |   | 20,661,190 |   |
|                                                                                                                          |   |            | 25,967,173 |   |             |   | 25,795,200 |   |
| Less: Treasury stock, 1,095,069 and 1,089,369 shares, at cost                                                                 |   |            | 13,279,249 |   |             |   | 13,253,523 |   |
| Total TSR, Inc. Equity                                                                                                        |   |            | 12,687,924 |   |             |   | 12,541,677 |   |
| Noncontrolling Interest                                                                                                       |   |            | 65,176     |   |             |   | 27,820 |   |
| Total Equity                                                                                                                  |   |            | 12,753,100 |   |             |   | 12,569,497 |   |
| Total Liabilities and Equity                                                                                                  |   | $               | 16,032,676 |   |             | $      | 15,611,595 |   |

----

|                                                                   |   | Three Months EndedNovember 30, |      |   | Six Months EndedNovember 30, |   |
|------------------------------------------------------------------------|--------|--------------------------------|-----------|--------|------------------------------|--------|
|                                                                   |   | 2010                           |      |   | 2009                         |   |   | 2010 |   |   | 2009 |   |
| Revenue, net                                                           |   | $                              | 9,756,983 |   |                         | $      | 9,340,341 |   |   | $ | 19,120,876 |   |   | $ | 18,432,643 |   |
|                                                                   |   |                           |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                          |   |                           | 7,853,945 |   |                         |   | 7,654,462 |   |   |   | 15,510,435 |   |   |   | 15,100,963 |   |
| Selling, general and administrative expenses                           |   |                           | 1,611,636 |   |                         |   | 1,516,003 |   |   |   | 3,248,141 |   |   |   | 3,042,045 |   |
|                                                                   |   |                           | 9,465,581 |   |                         |   | 9,170,465 |   |   |   | 18,758,576 |   |   |   | 18,143,008 |   |
| Income from operations                                                 |   |                           | 291,402   |   |                         |   | 169,876 |   |   |   | 362,300 |   |   |   | 289,635 |   |
|                                                                   |   |                           |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                |   |                           |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest and dividend income                                           |   |                           | 5,459     |   |                         |   | 14,176 |   |   |   | 11,239 |   |   |   | 32,472 |   |
| Unrealized gain (loss) on marketable securities, net                   |   |                           | 2,794     |   |                         |   | (896 | ) |   |   | (210 | ) |   |   | 2,784 |   |
|                                                                   |   |                           |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                             |   |                           | 299,655   |   |                         |   | 183,156 |   |   |   | 373,329 |   |   |   | 324,891 |   |
| Provision for income taxes                                             |   |                           | 124,000   |   |                         |   | 82,000 |   |   |   | 157,000 |   |   |   | 141,000 |   |
| Consolidated net income                                           |   |                           | 175,655   |   |                         |   | 101,156 |   |   |   | 216,329 |   |   |   | 183,891 |   |
| Less: Net income attributable to noncontrolling interest               |   |                           | (25,244   | )      |                         |   | (21,463 | ) |   |   | (44,356 | ) |   |   | (40,820 | ) |
| Net income attributable to TSR, Inc.                              |   | $                              | 150,411   |   |                         | $      | 79,693 |   |   | $ | 171,973 |   |   | $ | 143,071 |   |
| Basic and diluted net income per TSR, Inc. common share           |   | $                              | 0.07      |   |                         | $      | 0.04 |   |   | $ | 0.09 |   |   | $ | 0.07 |   |
| Weighted average number of basic and diluted common shares outstanding |   |                           | 2,019,094 |   |                         |   | 2,025,244 |   |   |   | 2,020,117 |   |   |   | 2,025,244 |   |

----

|                                                    |   | Shares ofcommonstock |          |   |  Commonstock |   |          | Additionalpaid-incapital |   |   |  Retainedearnings |   |   |  Treasurystock |          |   | Non-controllingInterest |   |          |  Totalequity |   |
|---------------------------------------------------------|--------|----------------------|---------------|--------|-------------------|--------|---------------|--------------------------|--------|--------|------------------------|--------|--------|---------------------|---------------|--------|-------------------------|--------|---------------|-------------------|--------|
| Balance at May 31, 2009                                 |   |                 | 6,228,326     |   |              | $      | 62,283        |                     |   | $      | 5,071,727              |   |   | $                   | 20,517,707    |   |                    | $      | (13,251,231   | )                 |   | $ | 17,636 |   |   | $ | 12,418,122 |   |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Reverse stock split 1:2                                 |   |                 | (3,114,163    | )      |              |   | (31,141       | )                        |   |   | 31,141                 |   |   |                | —       |   |                    |   | —       |              |   |   | — |   |   |   | — |   |
| Adjusted May 31, 2009                                   |   |                 | 3,114,163     |   |              |   | 31,142        |                     |   |   | 5,102,868              |   |   |                | 20,517,707    |   |                    |   | (13,251,231   | )                 |   |   | 17,636 |   |   |   | 12,418,122 |   |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Net income attributable to noncontrolling interest |   |                 |  — |   |              |   |  — |                     |   |   |  —          |   |   |                |  — |   |                    |   |  — |              |   |   |  40,820 |   |   |   |  40,820 |   |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Distribution to noncontrolling interest                 |   |                 |  — |   |              |   |  — |                     |   |   |  —          |   |   |                |  — |   |                    |   |  — |              |   |   | (6,000 | ) |   |   | (6,000 | ) |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Net income attributable to TSR, Inc.                    |   |                 | —       |   |              |   | —       |                     |   |   | —                |   |   |                | 143,071       |   |                    |   | —       |              |   |   | — |   |   |   | 143,071 |   |
| Balance at November 30, 2009                            |   |                 | 3,114,163     |   |              | $      | 31,142        |                     |   | $      | 5,102,868              |   |   | $                   | 20,660,778    |   |                    | $      | (13,251,231   | )                 |   | $ | 52,456 |   |   | $ | 12,596,013 |   |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Balance at May 31, 2010                                 |   |                 | 6,228,326     |   |              | $      | 62,283        |                     |   | $      | 5,071,727              |   |   | $                   | 20,661,190    |   |                    | $      | (13,253,523   | )                 |   | $ | 27,820 |   |   | $ | 12,569,497 |   |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Reverse stock split 1:2                                 |   |                 | (3,114,163    | )      |              |   | (31,141       | )                        |   |   | 31,141                 |   |   |                | —       |   |                    |   | —       |              |   |   | — |   |   |   | — |   |
| Adjusted May 31, 2010                                   |   |                 | 3,114,163     |   |              |   | 31,142        |                     |   |   | 5,102,868              |   |   |                | 20,661,190    |   |                    |   | (13,253,523   | )                 |   |   | 27,820 |   |   |   | 12,569,497 |   |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Net income attributable to noncontrolling interest |   |                 |  — |   |              |   |  — |                     |   |   |  —          |   |   |                |  — |   |                    |   |  — |              |   |   |  44,356 |   |   |   |  44,356 |   |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Distribution to noncontrolling interest                 |   |                 | —       |   |              |   | —       |                     |   |   | —                |   |   |                | —       |   |                    |   | —       |              |   |   | (7,000 | ) |   |   | (7,000 | ) |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Purchases of treasury stoc                              |   |                 | —       |   |              |   | —       |                     |   |   | —                |   |   |                | —       |   |                    |   | (25,726       | )                 |   |   | — |   |   |   | (25,726 | ) |
|                                                    |   |                 |          |   |              |   |          |                     |   |   |                   |   |   |                |          |   |                    |   |          |              |   |   |   |   |   |   |   |   |
| Net income attributable to TSR, Inc.                    |   |                 |  — |   |              |   |  — |                     |   |   |  —          |   |   |                |  171,973 |   |                    |   |  — |              |   |   |  — |   |   |   |  171,973 |   |
| Balance at November 30, 2010                            |   |                 | 3,114,163     |   |              | $      | 31,142        |                     |   | $      | 5,102,868              |   |   | $                   | 20,833,163    |   |                    | $      | (13,279,249   | )                 |   | $ | 65,176 |   |   | $ | 12,753,100 |   |

----

|                                                                                       |   | Six Months Ended November 30, |       |
|--------------------------------------------------------------------------------------------|--------|-------------------------------|------------|
|                                                                                       |   | 2010                          |       |   | 2009 |   |
| Cash flows from operating activities:                                                      |   |                          |       |   |   |   |
| Consolidated net income                                                                    |   | $                             | 216,329    |   |   | $ | 183,891 |   |
|                                                                                       |   |                          |       |   |   |   |   |   |
| Adjustments to reconcile consolidated net income to net cash used in operating activities: |   |                          |       |   |   |   |   |   |
| Depreciation and amortization                                                              |   |                          | 3,051      |   |   |   | 9,087 |   |
| Unrealized (gain) loss on marketable securities, net                                       |   |                          | 210        |   |   |   | (2,784 | ) |
| Deferred income taxes                                                                      |   |                          | 3,000      |   |   |   | 44,000 |   |
|                                                                                       |   |                          |       |   |   |   |   |   |
| Changes in operating assets and liabilities:                                               |   |                          |       |   |   |   |   |   |
| Accounts receivable                                                                        |   |                          | (1,885,810 | ) |   |   | (856,586 | ) |
| Other receivables                                                                          |   |                          | (547       | ) |   |   | 4,912 |   |
| Prepaid expenses                                                                           |   |                          | 56,927     |   |   |   | 18,116 |   |
| Prepaid and recoverable income taxes                                                       |   |                          | 84,271     |   |   |   | (32,337 | ) |
| Accounts and other payables and accrued expenses and other current liabilities             |   |                          | 296,228    |   |   |   | (98,435 | ) |
| Advances from customers                                                                    |   |                          | (58,750    | ) |   |   | (24,000 | ) |
| Net cash used in operating activities                                                      |   |                          | (1,285,091 | ) |   |   | (754,136 | ) |
| Cash flows from investing activities:                                                      |   |                          |       |   |   |   |   |   |
| Proceeds from maturities of marketable securities                                          |   |                          | 2,748,253  |   |   |   | 2,996,508 |   |
| Purchases of marketable securities                                                         |   |                          | (3,847,739 | ) |   |   | (1,999,191 | ) |
| Purchases of equipment and leasehold improvements                                          |   |                          | (2,394     | ) |   |   | (2,284 | ) |
| Net cash provided by (used in) investing activities                                        |   |                          | (1,101,880 | ) |   |   | 995,033 |   |
|                                                                                       |   |                          |       |   |   |   |   |   |
| Cash flows from financing activities:                                                      |   |                          |       |   |   |   |   |   |
| Purchases of treasury stock                                                                |   |                          | (25,726    | ) |   |   | — |   |
| Distribution to noncontrolling interest                                                    |   |                          | (7,000     | ) |   |   | (6,000 | ) |
| Net cash used in financing activities                                                      |   |                          | (32,726    | ) |   |   | (6,000 | ) |
|                                                                                       |   |                          |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                       |   |                          | (2,419,697 | ) |   |   | 234,897 |   |
| Cash and cash equivalents at beginning of period                                           |   |                          | 5,669,972  |   |   |   | 4,075,213 |   |
| Cash and cash equivalents at end of period                                                 |   | $                             | 3,250,275  |   |   | $ | 4,310,110 |   |
|                                                                                       |   |                          |       |   |   |   |   |   |
| Supplemental disclosures of cash flow data:                                                |   |                          |       |   |   |   |   |   |
| Income taxes paid                                                                          |   | $                             | 70,000     |   |   | $ | 130,000 |   |
|                                                                                       |   |                          |       |   |   |   |   |   |
|                                                                                       |   |                          |       |   |   |   |   |   |

----

| 1.   | Basis of Presentation |
|----------------|-----------------------|

| 2.   | Net Income Per Common Share |
|----------------|-----------------------------|

| 3.   | Cash and Cash Equivalents |
|----------------|---------------------------|

|                   |   | November 30,2010 |      |   | May 31,2010 |   |
|------------------------|--------|------------------|-----------|--------|-------------|--------|
| Cash in banks          |   | $                | 568,116   |   |        | $      | 2,171,031 |   |
| Money market funds     |   |             | 2,682,159 |   |        |   | 2,499,327 |   |
| US Treasury securities |   |             | —   |   |        |   | 999,614 |   |
|                   |   | $                | 3,250,275 |   |        | $      | 5,669,972 |   |

| 4.   | Revenue Recognition |
|----------------|---------------------|

----

| 5.   | Marketable Securities |
|----------------|-----------------------|

| November 30, 2010       |   | Level 1 |      |   | Level 2 |   |      | Level 3 |   |   | Total   |   |
|-------------------------|--------|---------|-----------|--------|---------|--------|-----------|---------|--------|--------|---------|--------|
|                    |   |    |      |   |    |   |      |    |   |   |    |   |
| US Treasury Securities  |   | $       | 2,497,740 |   |    | $      | —   |    |   | $      | — |   |   | $ | 2,497,740 |   |
| Certificates of Deposit |   |    | —   |   |    |   | 1,600,000 |    |   |   | — |   |   |   | 1,600,000 |   |
| Equity Securities       |   |    | 16,925    |   |    |   | —   |    |   |   | — |   |   |   | 16,925 |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
|                    |   | $       | 2,514,665 |   |    | $      | 1,600,000 |    |   | $      | — |   |   | $ | 4,114,665 |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
| May 31, 2010            |   | Level 1 |      |   | Level 2 |   |      | Level 3 |   |   | Total   |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
| US Treasury Securities  |   | $       | 1,498,253 |   |    | $      | —   |    |   | $      | — |   |   | $ | 1,498,253 |   |
| Certificates of Deposit |   |    | —   |   |    |   | 1,500,000 |    |   |   | — |   |   |   | 1,500,000 |   |
| Equity Securities       |   |    | 17,136    |   |    |   | —   |    |   |   | — |   |   |   | 17,136 |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
|                    |   | $       | 1,515,389 |   |    | $      | 1,500,000 |    |   | $      | — |   |   | $ | 3,015,389 |   |

----

|  November 30, 2010Current |   |   AmortizedCost |      |   | GrossUnrealizedHoldingGains |   |    | GrossUnrealizedHoldingLosses |   |   |   RecordedValue |   |
|--------------------------------|--------|---------------------------|-----------|--------|-----------------------------|--------|---------|------------------------------|--------|--------|---------------------------|--------|
| US Treasury Securities         |   | $                         | 2,497,740 |   |                        | $      | — |                         |   | $      | —                   |   |   | $ | 2,497,740 |   |
| Certificates of Deposit        |   |                      | 1,600,000 |   |                        |   | — |                         |   |   | —                   |   |   |   | 1,600,000 |   |
| Equity Securities              |   |                      | 16,866    |   |                        |   | 59      |                         |   |   |  —             |   |   |   | 16,925 |   |
|                           |   | $                         | 4,114,606 |   |                        | $      | 59      |                         |   | $      | —                   |   |   | $ | 4,114,665 |   |

|  May 31, 2010Current |   |   AmortizedCost |      |   | GrossUnrealizedHoldingGains |   |    | GrossUnrealizedHoldingLosses |   |   |   RecordedValue |   |
|---------------------------|--------|---------------------------|-----------|--------|-----------------------------|--------|---------|------------------------------|--------|--------|---------------------------|--------|
| US Treasury Securities    |   | $                         | 1,498,253 |   |                        | $      | — |                         |   | $      | —                   |   |   | $ | 1,498,253 |   |
| Certificates of Deposit   |   |                      | 1,500,000 |   |                        |   | — |                         |   |   | —                   |   |   |   | 1,500,000 |   |
| Equity Securities         |   |                      | 16,866    |   |                        |   | 270     |                         |   |   | —                   |   |   |   | 17,136 |   |
|                      |   | $                         | 3,015,119 |   |                        | $      | 270     |                         |   | $      | —                   |   |   | $ | 3,015,389 |   |

| 6.  | Fair Value of Financial Instruments |
|----------|-------------------------------------|

| 7.   | Stockholders’ Equity |
|----------------|----------------------------|

----

| 8.   | Other Matters |
|----------------|---------------|

| 9. | Recent Accounting Pronouncements |
|----|----------------------------------|

----

| Part I.  | Financial Information |
|---------------|-----------------------|

|                                         |   | (Dollar amounts in thousands)Three Months EndedNovember 30, |   |
|----------------------------------------------|--------|-------------------------------------------------------------|--------|
|                                         |   | November 30,2010                                            |   |   | November 30,2009 |   |
|                                         |   |   Amount                                          |   |   | % ofRevenue |   |   |   Amount |   |   | % ofRevenue |   |
| Revenue, net                                 |   | $                                                           | 9,757  |   |   |   | 100.0 | % |   | $ | 9,340 |   |   |   | 100.0 | % |
| Cost of sales                                |   |                                                        | 7,854  |   |   |   | 80.5 | % |   |   | 7,654 |   |   |   | 81.9 | % |
| Gross profit                                 |   |                                                        | 1,903  |   |   |   | 19.5 | % |   |   | 1,686 |   |   |   | 18.1 | % |
|                                         |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses |   |                                                        | 1,611  |   |   |   | 16.5 | % |   |   | 1,516 |   |   |   | 16.2 | % |
| Income from operations                       |   |                                                        | 292    |   |   |   | 3.0 | % |   |   | 170 |   |   |   | 1.9 | % |
|                                         |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                            |   |                                                        | 8      |   |   |   | 0.1 | % |   |   | 13 |   |   |   | 0.1 | % |
| Income before income taxes                   |   |                                                        | 300    |   |   |   | 3.1 | % |   |   | 183 |   |   |   | 2.0 | % |
| Provision for income taxes                   |   |                                                        | 124    |   |   |   | 1.3 | % |   |   | 82 |   |   |   | 0.9 | % |
| Net income                                   |   | $                                                           | 176    |   |   |   | 1.8 | % |   | $ | 101 |   |   |   | 1.1 | % |

----

----

|                                         |   | (Dollar amounts in thousands)Six Months Ended |   |
|----------------------------------------------|--------|-----------------------------------------------|--------|
|                                         |   | November 30,2010                              |   |   | November 30,2009 |   |
|                                         |   |   Amount                            |   |   | % ofRevenue |   |   |   Amount |   |   | % ofRevenue |   |
| Revenue, net                                 |   | $                                             | 19,121 |   |   |   | 100.0 | % |   | $ | 18,433 |   |   |   | 100.0 | % |
| Cost of sales                                |   |                                          | 15,511 |   |   |   | 81.1 | % |   |   | 15,101 |   |   |   | 81.9 | % |
| Gross profit                                 |   |                                          | 3,610  |   |   |   | 18.9 | % |   |   | 3,332 |   |   |   | 18.1 | % |
|                                         |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses |   |                                          | 3,248  |   |   |   | 17.0 | % |   |   | 3,042 |   |   |   | 16.5 | % |
| Income from operations                       |   |                                          | 362    |   |   |   | 1.9 | % |   |   | 290 |   |   |   | 1.6 | % |
|                                         |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                            |   |                                          | 11     |   |   |   | 0.0 | % |   |   | 35 |   |   |   | 0.2 | % |
| Income before income taxes                   |   |                                          | 373    |   |   |   | 1.9 | % |   |   | 325 |   |   |   | 1.8 | % |
| Provision for income taxes                   |   |                                          | 157    |   |   |   | 0.8 | % |   |   | 141 |   |   |   | 0.8 | % |
| Net income                                   |   | $                                             | 216    |   |   |   | 1.1 | % |   | $ | 184 |   |   |   | 1.0 | % |

----

----

|                    |   | Payments Due By Period |      |
|-------------------------|--------|------------------------|-----------|
| Contractual Obligations |   |  Total            |      |   | Less than1 Year |   |   |  1-3 Years |   |   |  3-5 Years |   |   | More than 5 Years |   |
| Operating Leases        |   | $                      | 948,000   |   |   | $ | 295,000 |   |   | $ | 504,000 |   |   | $ | 143,000 |   |   | $ | 6,000 |   |
| Employment Agreements   |   |                   | 1,263,000 |   |   |   | 600,000 |   |   |   | 400,000 |   |   |   | 263,000 |   |   |   | — |   |
| Totals                  |   | $                      | 2,211,000 |   |   | $ | 895,000 |   |   | $ | 904,000 |   |   | $ | 406,000 |   |   | $ | 6,000 |   |

----

| Item 4.  | Controls and Procedures |
|---------------|-------------------------|

----

| Part II.  | Other Information |
|----------------|-------------------|

| Item 6.  | Exhibits |
|---------------|----------|

|   | (a).  | Exhibit 31.1 – Certification by J.F. Hughes pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                         | TSR Inc.     |                                |
|----------------------------------------------------------------------------------------------|--------------|-------------------------------------|
|                                                                                         | (Registrant) |                                |
|                                                                                         |         |                                |
|                                                                                         |         |                                |   |
| Date:           January 7, 2011  | By:          | /s/ J.F. Hughes                |   |
|                                                                                         |         | J.F. Hughes, Chairman and President |   |

|                                                                                         |   |                                                                |
|----------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|
|                                                                                         |   |                                                                |
|                                                                                         |   |                                                                |
| Date:           January 7, 2011  | By:    | /s/ John G. Sharkey                                            |   |
|                                                                                         |   | John G. Sharkey, Vice President Finance and Chief Financial Officer |   |
|                                                                                         |   |                                                                |   |
|                                                                                         |   |                                                                |   |

----